Stateways Sept-Oct 2014

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays Q Q September/October 2014 16 CONTROL STATES EXECUTIVE FORUM +++++++++++++++++++++ pling on their premises beginning July 1, 2014. The ISLD was instrumental in creating a legal framework that permits Idaho distilleries to provide samples as well as selling their bottled products at their distilleries. Our distillers finally have equal footing with wineries and breweries in their abil- ity to sample and sell their locally produced products. Going forward, we will continue to rigorously focus on Caring for the Customer by continually adapting our business practices for our customers in order to improve: responsible service; product optimization; store and ware- house innovation; nurturing relationships with our valued suppliers; and delivering a world class shopping experience. Finally, we'll continue to partner with NABCA and community partners to guarantee we have a prominent role in responsibly supporting the communities we serve. Cheers! IOWA Stephen E. Larson Administrator, Alcoholic Beverages Division M ay 1, 2014 marked the beginning of my second four year term as the Administrator of the Iowa Alcoholic Beverages Divi- sion. Reappointment by Governor Branstad to serve the citizens of Iowa in this capacity is an honor and a privilege. I am proud of what has been accomplished by my staff and anticipate an ex- citing future with more improvements on the horizon. Record Sales The Division had another record setting year, with over $263.5 million in liquor sales in fiscal year 2014. Overall, sales increased 3% from a year earlier. While the Division has continued the trend of contributing record revenues to the state's General Fund, we have also been busy in several other areas. Operational Efficiencies The record profits and other trends in Iowa precipi- tated the need to enhance operational efficiencies in order to maximize the return to the State. Last year, the Division conducted a comprehensive review of Iowa's distribution model and we have executed numerous projects based on the recommendations. These projects include installing racking in the warehouse, changing the direction of the flow of picking, prioritizing pick slots and expanding truck parking for better flow of inbound and outbound traffic. Leveraging Technology The Division has also invested substantial resources to implement systems that will drive operational improvement in the areas of inventory management, warehouse produc- tivity and the ordering process. To that end, the Division has launched EDI (Electronic Data Interchange), an e-com- merce interface allowing customers to instantly transmit a liquor order from their computer directly to our warehouse management system. Other improvements include a ven- dor product management portal, consolidation of operating platforms to increase efficiency and an investment in fiber optics for better security of data and additional bandwidth. Credibility and Predictability In 2010, the Division implemented an education and outreach campaign to strengthen existing relationships with industry members and stakeholder associations in order to engage in solution-oriented conversations about alcohol related issues. Fast forward to today and the Di- vision has made great strides toward creating more open lines of communication with our partners. In addition, the Division has continued its mission to increase regulatory clarity and has made compliance with Iowa's alcohol laws and regulations a key element of our strategic plan. The Division remains focused on ensuring all stakeholders are able to conduct their business on a level playing field within the boundaries of the law. To this end, the Division has committed to creating cred- ible, predictable and sustainable regulatory, education and compliance programs for Iowa businesses. Trade Practices Matter During the past four years, the Division has significantly increased our contact with industry members and our under- standing of their issues. They, in turn, have expressed a desire for the Division to clarify the sometimes confusing state and federal trade practice regulations. Based on this feedback, the Division is taking a proactive regulatory stance by addressing "gray" areas in a black and white fashion. MAINE Gregg Mineo Director, Bureau of Alcoholic Beverages and Lottery Operations A new day has come to Maine. Over the last two years, the Maine Bu- reau of Alcoholic Beverages and Lottery Operations

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